USCIB Members Address Network Security During Crises, Environmental Sustainability at IGF

The fifteenth Internet Governance Forum (IGF), which was held in two phases November 2 -November 17, featured expert commentary from USCIB members that addressed two of the key thematic pillars of this year’s event – trust and improving the environment. Chris Boyer (AT&T) moderated a USCIB-organized workshop, in which Kathryn Condello (Lumen) highlighted how business and government closely collaborated from the earliest days of the COVID-19 pandemic to ensure secure, stable and reliable connectivity and, in so doing, create a framework for trust in the online environment.

In another USCIB-organized workshop, Matt Peterson (Amazon) and Caroline Louveaux (Mastercard) described their respective companies’ efforts to leverage technologies and their networks to address the planet’s environmental challenges through such initiatives as Amazon’s “Climate Pledge Fund” and Mastercard’s “Priceless Planet Coalition.”

According to USCIB Vice President for ICT Policy Barbara Wanner, both USCIB workshops attracted thirty-five to fifty virtual attendees from stakeholder groups throughout the world and garnered praise for the relevance and insightfulness of speakers’ comments in view of the still-rampant pandemic and challenges to the global environment.

Under the overarching theme ‘’Internet for human resilience and solidarity,” the annual IGF was hosted virtually by the United Nations given COVID-related travel restrictions. Given its virtual nature, the IGF Secretariat estimated that the event brought together more than five thousand leaders and ‎stakeholders of all sectors and all parts of the world, to discuss the impact of the Internet on ‎our lives within four key thematic tracks: (1) Data; (2) Environment; (3) Inclusion and (4) Trust.‎ As mentioned, USCIB members chose to showcase their corporate expertise under the trust and environment themes in two of the more than 200 IGF workshops.

Carol Doran Klein Retires, USCIB Welcomes Rick Minor as New Tax Lead

Carol Doran Klein
Carol Doran Klein

USCIB is pleased to announce that Richard Minor (who goes by Rick) has joined as its next International Tax Counsel upon Carol Doran Klein’s retirement.

“Carol has contributed immeasurably to the strengthening of the USCIB tax practice and we are grateful for her professional contributions and personal friendship over the last ten years,” said Peter Robinson, USCIB’s president and CEO. He added, “While we are saddened to see Carol go, Rick is a worthy successor and an excellent addition to the USCIB team. He brings a wealth of technical knowledge on international tax matters, experience in OECD tax policy and process, and a robust foreign government and European Commission network. I’m confident his expertise and international perspective will serve USCIB members well.”

Rick Minor
Rick Minor

Minor has deep experience in both the private and public sectors, having held senior tax roles with three large companies in Europe, in addition to serving as a Digital Policy Advisor to the Government of Luxembourg on a broad range of cross-border business issues with particular regard to EU data privacy, VAT and digital tax policy. His corporate background included positions as Vice President, Group Tax Counsel and Government Affairs for AOL Europe; Head of Tax, EMEA for ArcelorMittal; and Director of Tax, EMEA for Honeywell Europe. Minor also served as Director of International Cooperation and Business Investment for the North Carolina Department of Commerce, working to attract U.S. and foreign corporate investment to North Carolina. Minor got his bachelors at Duke University, his law degree at UNC-Chapel Hill and his LL.M. in tax at Georgetown. He began his career as an attorney specializing in international tax planning with global law firms in DC, Munich and London. Doran Klein and Minor served together on the OECD Technical Advisory Group (TAG) for VAT.

Minor assumes management of the USCIB Committee on Taxation, which promotes sound, appropriate and consistent international tax policy in the U.S. and overseas, including minimizing double taxation. The committee is chaired by Bill Sample, tax policy advisor at Microsoft Corporation, and encompasses leading tax professionals from USCIB member companies and organizations. The committee is especially active on OECD matters, in view of USCIB’s role as the American affiliate of Business at OECD (BIAC), and organizes a yearly conference bringing together USCIB members with top tax officials from the OECD and member governments.

USCIB Provides Feedback on AI to the National Institute of Standards and Technology

As the National Institute of Standards and Technology (NIST) works on its principles of explainable “Artificial Intelligence (AI),” USCIB welcomed an opportunity to submit comments on behalf of its members. The comments, sent to the NIST Director and Undersecretary of Commerce for Standards and Technology Dr. Walter Copan, draw from industry experience, as well as from USCIB’s direct input to the development of the OECD’s AI Principles through USCIB’s affiliation with Business at OECD (known as “BIAC”).

“NIST’s effort represents a positive first step in terms of grappling with the issue of AI explainability,” remarked USCIB Vice President for ICT Policy Barbara Wanner. “The draft, and NIST’s broader program to develop approaches to AI trustworthiness, should significantly contribute to the private and public sector’s understanding of the many considerations necessary to implement AI, while ultimately enabling broader, faster and more responsible use of AI. We believe that, to be most effective, humans and machines should collaborate, combining their respective strengths to provide sustainable value for consumers, businesses, governments and society.”

In its comments, USCIB also highlighted the work of USCIB members such as Facebook, Google, IBM and Microsoft within an Experts Group that developed the OECD’s AI Principles. The U.S. government also contributed actively to the development of the OECD principles, under the leadership of the State Department.  On May 22, 2019, the OECD’s 36 member countries, along with Argentina, Brazil, Colombia, Costa Rica, Peru, and Romania,  endorsed the OECD Council Recommendation on Artificial Intelligence. The principles contained in the recommendation were subsequently endorsed by the G20.

Hampl Discusses Role of Open Markets, Inclusive Multilateralism in COVID-19 Recovery

USCIB Senior Director for Trade and Financial Services Eva Hampl provided a U.S. business perspective at the Joint Conference on Reviving the Global Economy by Opening Markets and Enhancing Cooperation. The event was co-organized by the China Council for the Promotion of International Trade (CCPIT) and the International Chamber of Commerce (ICC) on September 28.  During her panel, Hampl discussed what USCIB has been focusing on to advance open markets and an economic recovery from the COVID-19 pandemic.

“We have been active in all available forums to advocate that governments refrain from misusing the COVID-19 pandemic to adopt arbitrary, discriminatory or protectionist policies which only disrupt supply chains and put further strains on the economy – this also includes measures already in place that are now being justified by the pandemic,” said Hampl. “We consistently emphasize the crucial role of open trade and global value chains as fundamental drivers to recover from this global crisis.”

Hampl also discussed longer-term solutions, such as diversifying supply chains, so that global issues, such as a pandemic, do not endanger the reliable supply of necessary goods and services.

According to Hampl, the pandemic has highlighted the transformative power of digital technologies.

“Companies across all sectors stepped up to work closely with governments and other stakeholders to respond to urgent medical, economic and social needs by deploying and driving digital technology solutions,” said Hampl. “Looking ahead, digital technologies have the potential to shape the sustainable recovery from the pandemic. This also includes accelerating the digitization of government services such as licensing, permitting, tax collection and procurement.”

Hampl also emphasized the importance of global cooperation through multilateral institutions and discussed the role of inclusive multilateralism in the context of the COVID-19 outbreak.

“A COVID-19 response must be an ‘all hands on deck’ approach,” she noted. “When USCIB advocates for multilateralism, we mean multilateralism that promotes peace, cooperation and social justice, relies on effective and transparent multilateral bodies, advances collaborative approaches among states, encourages international dialogue and cooperation to design and implement effective policies and, finally, engages business across all sectors and other stakeholders in substantive dialogue and partnerships.

To view the video in English, please click here.

What COVID-19 Has Taught Us About Digital Transformation of the Economy

USCIB released a thought piece with concrete policy recommendations on “What COVID-19 has Taught Us About Digital Transformation of the Economy: Early Lessons Learned,” with a specific focus on the role of digital technologies, including on the issues of infrastructure, connectivity, capacity building and the digital divide, data flows and trust, as well as on the importance of Artificial Intelligence. To download, please click here.


The COVID-19 pandemic has highlighted the transformative power of digital technologies. These cutting-edge technologies not only have enabled real-time information exchanges about the virus, but also have facilitated the provision of critical medical services and government financial support for business and individuals as well as provided a means of continuing commercial and economic activity. The ability to connect online has served as a lifeline to literally millions of global citizens anxious for safe, virtual social engagement and a way to continue their children’s education, among other societal needs.

Responding quickly to the global crisis, companies across all sectors stepped up to work closely with governments and other stakeholders to deploy and drive digital technology solutions in response to these urgent medical, economic, and social needs. Whether it be via AI-powered applications, enhanced broadband connectivity, cloud computing services, data and cybersecurity or other digital technologies, companies in all sectors have been proving how important digital technology is for the health and well-being of all.

Even more important, digital technologies have the potential to shape a sustainable recovery from the pandemic, including accelerating the digitization of such government services as licensing, permitting, tax collection and procurement. Key to realizing this, however, is a policy framework that creates an enabling environment for investment in technology innovation and deployment. Such policies may address economic, social/cultural, technical, and governance issues, all of which are interlinked and cross-cutting. This holistic approach will best enable development of a secure digital infrastructural foundation to realize greater resilience and preparedness in the face of whatever natural or man-made challenge we may face going forward.

As of September 2020, the COVID-19 virus still was far from under control – and was anticipated to remain a challenge well into 2021.  U.S. business regards the following issues as key early lessons from the COVID-19 crisis. These lessons will require the urgent attention of policymakers to address healthcare, employment, education, commercial, and economic development needs in the near-term. Equally important, is imperative that we accelerate policy implementation in order to realize the best chance of a soft landing and solid return to commercial and economic activity when the pandemic eventually has been conquered through rigorous scientific means.

Infrastructure, Connectivity, and Spectrum – Public policies should focus on fostering robust connectivity. The benefits of digital transformation in responding to a global crisis can only be realized if there is adequate broadband infrastructure and spectrum.  In addition, the availability of licensed spectrum for exclusive use and shared use as well as unlicensed use has an important and complementary role in promoting the accessibility of the Internet and its developmental potential. There are many important uses of spectrum, including broadcast and mobile broadband as well as for Wi-Fi.

Policy Recommendation – Governments should incentivize investment in broadband technologies and streamline regulatory policies in order to facilitate broadband deployment, focusing on under-served areas. In addition, effective and technologically neutral management of spectrum – and increasingly scarce resource — must be a priority for policymakers while ensuring the integrity of services offered by existing spectrum license holders.

Capacity Building and Bridging the Digital Divide – The COVID-19 crisis highlighted the gap between the digital “haves” and “have nots,” the latter group suffering most acutely from the virus access to healthcare and medical resources. In a 2017 report, the International Telecommunication Union (ITU) found that while more than 7 billion people now have access to voice services, more than 70 per cent of those living in the least developed countries (LDCs) still cannot afford a basic Internet connection, and less than half the people in the world regularly use the Internet.

Policy Recommendation – In order to proactively safeguard against the devastating effects of future crises, the global community must join in building digital and connectivity capacity in developing countries as well as enabling the necessary digital skills, especially for marginalized communities, to fully utilize internet connectivity.

Closing the E-Government Utilization Gap – Related to the above, the pandemic also exposed significant gaps in the ability of our governments to pivot online quickly to provide services.  Government services simply have not digitized fast enough or taken full advantage of the availability of broadband to improve their customer service, capacity, resiliency, adaptability, transparency, and security. Not only is the physical infrastructure lacking, but the rules for provisioning virtual services and teleworking for government employees remain unclear as well.  Given the demonstrated capacity and capability of our networks, governments are suffering from a utilization diffusion lag, which particularly harms marginalized and vulnerable communities.

Policy Recommendation – Governments should take aggressive steps to address their technology utilization gaps and leverage the capacity and capability of networks to conduct government business and offer online citizen services. In doing so, governments should ensure data and cybersecurity are prioritized to protect government and citizen information and harness the benefits of cloud computing for operational efficiency. To speed the rebuilding of the economy, governments should prioritize the digitization of the licensing and permitting process, such as in construction, to provide rapid stimulus to a global economy slowed by COVID-19. Governments also should leverage public-private partnerships and invest in the development, deployment, and procurement of digital services for the benefit of their citizens.

Data Flows and Trust – U.S. business embraces the view that the free flow of data and information is critical for economic development and addressing societal needs. The pandemic underscored the imperative for medical professionals around the world to share data in real-time critical to containing and mitigating the virus. That could not happen if a country’s policies hampered data flows. At the same time, however, U.S. business realizes that the medical, economic and other societal benefits enabled by data flows will only be embraced by consumers, businesses, and governments who trust the online environment. Users must feel confident that the privacy of their personal data will be respected and that their online systems are secure.

Policy Recommendation – Business believes that trust in the online environment is best achieved through risk-based and globally interoperable approaches to privacy and security protections. These conditions will ensure that data free flows with trust, an approach endorsed by the G20 countries in 2019.

Data and Cybersecurity – The importance of data and cybersecurity to the accelerated digital transformation brought on by the pandemic should not be understated.  As business and government networks have become more decentralized with remote work, new data and cybersecurity risks and vulnerabilities have emerged. Organizational leaders have needed to ensure they are extending the same security capabilities and best practices in their enterprise networks to all at-home network environments, leveraging cloud-delivered security technologies to do so rapidly and at scale. The pandemic has reshaped many global governments’ understanding of critical infrastructure and “essential” services, to better recognize the complex and interdependent nature of modern supply chains and that data and cybersecurity are essential to business continuity. 

Policy Recommendation – Governments should recognize the criticality of cybersecurity to continuity of essential services across all critical infrastructure sectors; help educate businesses and citizens about data and cybersecurity risk management and their respective responsibilities related to secure remote networking; incentivize the use of cloud-delivered security to enable secure remote workforces and schools at scale; and promote greater voluntary sharing of cyberthreat information and online safety best practices.

E-Commerce and Delivery of Essential Goods and Services – While the COVID-19 crisis accelerated digital transformation in general, the accelerated progress was especially evident with respect to the online sale and provision of goods and services. E-commerce driven by large companies and SMEs alike helped to ensure economic continuity especially during the early stages of the COVID-19 pandemic.

Policy Recommendation – Policies should be reviewed and updated, if necessary, to ensure that they do not impede expeditious online provision of goods and services, including public sector services.

Importance of Artificial Intelligence (AI) – The pandemic highlighted how AI could be used to control the impacts of the virus as well as aid mitigation. For example, Amazon Web Services (AWS) launched the AWS Diagnostic Development Initiative, committing $20 million to accelerate diagnostic research, innovation, and development to speed collective understanding and detection of COVID-19 and other innovate diagnostic solutions to mitigate future infectious disease outbreaks.  More broadly, U.S. business recognizes the potential of AI to address economic, societal, and environmental inequalities. AI and other virtual/augmented reality technologies will continue to evolve and develop in ways that will facilitate mitigation of future crises.

Policy Recommendation – Business believes that existing regulations are sufficient for many AI applications and that any new requirements should be carefully considered in consultation with stakeholders to ensure they are narrowly tailored to address specific concerns as they arise. It is essential that all stakeholders work together to shape the development of AI to foster trust and broaden deployment so we are poised to use it effectively in addressing future crises.

USCIB Interviews John Frank on Microsoft’s New Office in NY for UN Affairs

John Frank

USCIB member since 1996, Microsoft has recently established a New York office to liaise with the United Nations. Norine Kennedy, who leads USCIB work on strategic international engagement, energy and environment, conducted a (virtual) interview with the head of this new office—Vice President for UN Affairs John Frank. Kennedy welcomed Frank to NY and posed some questions about Microsoft’s strategic vision for an enhanced presence at the UN, and invited his perspective on what American innovation, engagement and sustainability leadership can bring to the international community.


Microsoft’s decision to establish a New York office to connect directly with the UN is unique among our members. Could you talk about the process that led to this decision?

Many of the big challenges facing society can only be addressed effectively through multi-stakeholder action. Whether it’s public health, environmental sustainability, cybersecurity, terrorist content online or the UN’s Sustainable Development Goals, we have found that multilateral cooperation is essential. And we need inclusive governance that brings in civil society and private sector organizations to collaborate on solutions. At Microsoft, we have taken active roles to encourage and support multi-stakeholder initiatives like the Paris Call for Trust and Security in Cyberspace and the Christchurch Call to eliminate terrorist and violent extremist content online.

As we have deepened our engagements on global and multi-stakeholder initiatives, we find ourselves interacting with the UN system and other multilateral institutions more deeply. The UN General Assembly High Level Week brings many people, including companies, to New York. But the work does not stop there. The people and processes that aim to solve these collective challenges continue after High Level Week concludes, so we decided we should be here all year long.

Establishing our representation office with people based in New York and Geneva is the next natural step for a company that values multilateralism and multi-stakeholder solutions to global challenges.

What do you see as the role of tech companies such as Microsoft in a post COVID-19 world?

The COVID-19 experience has greatly accelerated the adoption of technology across many organizations. Whether one uses Microsoft Teams, or Zoom, or another video conferencing solution, we have all moved our meetings and conferences online. Outside of the workplace, technology is helping us educate our children, engage with friends and family, and make our voices heard during the pandemic. In a post COVID-19 world, we expect some best practices will persist, allowing for more flexible workplaces, next generation classrooms, and other technology-enabled advances to improve how we work, communicate, and learn.

We believe this digital transformation will continue to accelerate. We see greater urgency to harness data science, especially for public health. Software, computers and data science are becoming core to every organization. Every company is becoming either a tech company, or a tech-enabled company. We will continue to see growth in the number of tech companies and the number of technology skilled workers.

COVID-19 has also sharpened the digital divide. As schooling moves online, students without affordable broadband access and laptops are at risk of being left behind. Telemedicine has seen great adoption and social benefits, but communities without broadband access cannot benefit. Billions of people around the world are still not connected. The pandemic has drawn into stark focus the need to narrow the digital divide between and within countries. And we need to enable institutions and individuals to develop the digital skills to flourish in a technology-enabled future.

Some technology companies have enjoyed great success but have not always earned the trust and respect of political leaders. It’s no surprise that our industry is facing greater calls for corporate responsibility and regulation in several jurisdictions globally. And so we have important work on both transformations – contributing to our customers’ digital transformations, and to new regulatory frameworks that will support innovation and greater corporate responsibility.

What is your vision for your team regarding UN engagement, particularly on over-arching UN-wide efforts to respond to COVID-19 and a sustainable and resilient recovery?

Across Microsoft, we have several engagements with the UN that are intended to help the UN amplify its efforts in a wide range of areas. Our representation office focuses on how we can help those initiatives be more impactful and help our Microsoft colleagues engage the many parts of the UN system in a way that best meets the UN’s needs.

Our initial focus will be on supporting and promoting cooperation with the UN to advance progress in six key areas: climate action; human rights; strong institutions; decent work and economic growth; quality education; and broadband availability and accessibility.

Our partnerships support the Secretary-General’s plan for a comprehensive UN response to COVID-19 to save lives, protect societies, and recover better. We will continue our projects that contribute to a sustainable and inclusive economic recovery.

Since March 2020, our senior leaders have been working with the leaders at WHO to develop big data solutions that will greatly increase the scientific capacity of WHO to address COVID-19 and future health challenges. This work has implications for all nations that are dealing with the effects of the pandemic.

We also focus on digital inclusion initiatives. Our colleagues have promoted innovative, lower-cost solutions to bring broadband access to rural Africa because getting the world online will help build sustainable and inclusive societies. Five years ago, I visited a demonstration project in Mawingu, Kenya, for a low-cost broadband solution using unused spectrum allocated to broadcast television. That technology is now proven, and there is a group of local companies ready to deploy scale solutions in Africa. Our team is focused on their last mile: how we can help those projects get financing so they can bring broadband to millions of people at affordable prices.

Microsoft colleagues have been working for years on education opportunities for refugees and internally displaced people. The Learning Passport began as a partnership among UNICEF, Microsoft and the University of Cambridge. The program was designed to provide education for internally displaced and refugee children through a digital remote learning platform. It has now undergone rapid expansion to help countries roll out their online curricula for children and youth whose schools were forced to close due to COVID-19. The platform will also provide key resources to teachers and educators who need to adapt to online learning quickly.

Protecting human rights remains essential across everything we do. We have an important partnership with the Office of the UN High Commissioner for Human Rights to support their work with a technology tool, Rights View, that enables them to monitor human rights developments around the world.

The vision for our UN Affairs team is to engage with the UN community, build relationships and learn, and help make Microsoft’s partnerships more impactful.

COVID-19 delays within UN processes on climate change and biodiversity notwithstanding, Microsoft has announced impressive leadership initiatives in the sustainability space.  Could you talk about those and the synergies you hope to see in bringing those into and partnering with the UN?

Around the time the US Administration announced its withdrawal from the Paris Climate Accord, our company leadership decided that we needed to do more directly not only to reduce, but to reverse our environmental impact. We have chosen four focus areas: carbon, water, biodiversity, and waste. We have set bold goals for ourselves, based on rigorous environmental standards and business planning. For example, we have pledged to be carbon negative on Scope 1, 2, and 3 emissions by 2030 and to achieve net zero carbon emissions for our Scope 1 and 2 emissions for the 75 years of the company’s existence by 2050.

Companies need to share and learn from each other how we to make progress towards these kinds of goals. The NetZero Coalition is a forum we helped form for this purpose. We want to share aspirations and operational experiences so that eventually, small, medium and large size organizations can learn how to implement programs that are economically sound, and ambitiously reduce carbon emissions.

The UN and its agencies have been on a similar journey, researching and learning more about how to tackle climate change collectively. With our engagements with the UN, we hope that we can expand the reach and amplify the learnings on how organizations, large and small, can move from aspiration to achieving measurable and ambitious operational goals.

Let’s switch gears to the digital economy. UN Secretary-General Antonio Guterres has issued a Digital Cooperation Roadmap. Through USCIB, Microsoft actively contributed to advocating for an Internet Governance architecture that would build upon the current Internet Governance Forum. The UN Roadmap also addresses connectivity, privacy protections and human rights, and cybersecurity. Overall, how would Microsoft like to see this Roadmap carried forward in the UN – recognizing that many member states still may lack a strong digital infrastructure?

The Roadmap for Digital Cooperation embraces a multi-stakeholder approach that Microsoft, USCIB and others have been advocating over a number of years. It is important for USCIB and our fellow members to remain engaged. We hope that the progress we made together to shape the vision for the eight areas for action can be advanced to make ambitious progress in implementation, engaging multi-stakeholder processes. The appointment of a UN Technology Envoy will be a welcome step.

Microsoft has embraced the opportunity to contribute to the Roundtable process this year, including as co-champion of the section on Digital Trust and Security. Our company had an opportunity to participate in important discussions to advance broader understanding of the strong linkage between digital trust and security, and how essential they are to protecting the digital environment that enables progress on the Sustainable Development Goals.

As you note in your question, many member states are still building their digital infrastructure and so we believe it is important to devote significant energy to helping them build their digital capacities.  Affordable broadband connectivity, guaranteeing human rights, and commitment to keeping the Internet free, open and secure, and building capacity for digital trust and security are important priorities.

And in all countries, there is important work to be done promoting inclusive economic recovery, addressing the digital divides with affordable broadband access, skilling workers for greater economic rewards, and remotely teaching students.

Microsoft has been an active contributor to the UN Open-Ended Working Group on Cybersecurity, a multi-stakeholder group. This has enabled business to provide critical technical expertise to security-related discussions. USCIB members are concerned about the efforts of Russia, China, and others to press for a binding UN cybersecurity treaty or other legal instrument. How can we leverage groups like the Open-Ended Working Group to build broader support for our view that a UN binding cybersecurity instrument risks doing more harm than good?

We can all benefit from the expanding number of nations that make cybersecurity a priority. Perhaps the clearest message from the OEWG process is that nations want to build their capacity, both to keep themselves more secure and to deepen their understanding of cybersecurity practices, norms and international protections.

Cybersecurity is also being addressed in other international fora. The Paris Call now has 78 nations as signatories (as well as nearly 1000 local government, civil society and private sector endorsers). We have all pledged to support nine widely accepted principles, and to work together to help elaborate and implement the principles. Siemens is leading a group of companies to improve supply chain security, called the Charter of Trust. Microsoft helped launch the Cybersecurity Tech Accord to collaborate on making products more secure over their lifetimes. At the OECD, a group has been working to elaborate how a “no hacking back” principle could be applied in practice. These represent just a fraction of the initiatives that have emerged in recent years to promote a safer cyberspace.

Most significantly, we need to make progress expanding the number of nations that can engage fully on cybersecurity practices and policy, and we need to work inclusively to build from principles that have already been agreed to more concrete norms and practices. And then, we can evaluate how to approach new legal instruments.

As you know, USCIB has worked with UN agencies on behalf of its members for decades and is conscious of the opportunities, even under the current circumstances, to support and advance the effectiveness of UN efforts by crowding in U.S. private sector innovation and hands-on engagement. As a valued member of USCIB, where would Microsoft like to see USCIB focus to pursue opportunities to co-create practical shared value with UN partners looking ahead towards rebuilding better and more sustainably?

We need USCIB’s leadership to help advance inclusive global governance innovations. USCIB members can help create new opportunities by sharing and learning from each other on how we can collectively address the big challenges, like strengthening our global capacity and cooperation for public health and pandemic response.

We are all experiencing together the COVID-19 pandemic and the breakdowns and gaps in our global economy that have prevented us from better containment and care. Governments will address these issues – including rethinking some critical supply chains – and private sector actors should be deeply engaged in contributing to the new solutions. Along with civil society, which plays an especially important role in global health, we can all engage to help build an improved system for global cooperation and national preparedness to better manage public health challenges.

Climate change can seem such an overwhelming challenge that it can be difficult to know where private sector actors should start. Across the full range of our economy, one can see innovations and experimentation that hold promise for reducing our climate impact. USCIB can be a valuable convener for how we can learn from each other and how we can strengthen the UN’s efforts through broader cooperation and commitment.

Finally, we should also devote time and effort together to share views and try and build consensus on how our global institutions should be reformed and strengthened. We seem to be at an inflection point where the weaknesses of our global governance systems have been highlighted, but the reforms have not been elaborated and agreed. The missions of many global institutions are important to the USCIB members, and it’s an opportune time to reimagine how global governance can become more inclusive and effective.

USCIB Submits Comments to USTR on Proposed Digital Services Taxes

USCIB provided comments to the United States Trade Representative (USTR) regarding the proposed Digital Services Taxes (DSTs) of several countries, including Austria, Brazil, Czech Republic, India, Indonesia, Italy, Spain, Turkey, the United Kingdom, as well as the European Union.

USCIB’s submission focused on whether these countries violated Section 301 while encouraging the U.S. to seek a multilateral solution.

“The DSTs under investigation are a poor choice to address the tax issues arising from digitalization of the economy and will work against the economic recovery they are intended to help fund,” said USCIB Vice President for Taxation Policy Carol Doran Klein. “Rather, the U.S. should work cooperatively to find an appropriate multilateral solution to taxing the digitalizing economy that does not unduly burden U.S. interests and fosters certainty for business.”

USCIB Urges US Government to Ensure Data Transfer in Light of Ruling by European Court of Justice

USCIB co-signed a multi-association letter to U.S. Commerce Secretary Wilbur Ross in response to a July 16 ruling by the European Court of Justice (CJEU) that invalidated the 2016 EU-US Privacy Shield framework governing the protection of transatlantic data flows.

The Privacy Shield plays a critical role for data transfers for over 5,300 U.S. companies, 70 percent of which are Small and Medium Enterprises (SMEs). These companies contribute significantly to the nearly $1.1 trillion in U.S. total trade in goods and services with the EU. Companies in the automotive, retail, hospitality, logistics, health care, manufacturing and human resource management fields are all certified to the Privacy Shield Program.

The multi-association letter urges the U.S. government to work collaboratively with EU counterparts “to develop a stable and sustainable mechanism for companies to transfer data between the EU and United States” and to ensure that EU regulators allow data transfers to continue while a new agreement is under discussion.

The letter further notes the urgent implications of the COVID-19 pandemic, which has required many American businesses to use remote services and rely upon the ability to move data across many borders.

The CJEU did, however, uphold the validity of the Standard Contractual Clauses (SCC) privacy protective mechanism for transferring data.

USTR Must Urge Canada and Mexico to Honor USMCA Commitments

USCIB joined the Alliance for Trade Enforcement (AFTE) to send a letter to U.S. Trade Representative Robert E. Lighthizer to ensure that Canada and Mexico abide by the commitment they have made in the United States-Mexico-Canada Agreement (USMCA) and treat U.S. interests fairly.

The letter stated: “We applaud the sentiments that you expressed in your recent congressional testimony about your willingness to seek dispute settlement on issues of importance to U.S. manufacturing, agriculture and service sectors where those countries fall short, including patent, trademark and market access issues impacting innovative industries from both new and longstanding policies and regulations in Mexico and Canada.”

The group noted support for Lighthizer’s attention to the full enforcement of IP commitments made in the USMCA which protects U.S. IP-intensive industries, such as patent linkages and provisions to protect against abuses of the regulatory review exception, as well as broader market access barrier to innovative products, namely the lack of approvals for imported agricultural biotech products. AFTE argued that Mexico’s failure to approve such products threatens both trade with Mexico and U.S. farmers’ access to important technologies; meanwhile, Canada’s Patented Medicine Prices Review Board continues to develop and implement unfair pricing and reimbursement regulatory schemes that don’t account for the cost of research and development of innovative treatments, which ultimately reduces incentives for American scientists and manufactures to research and develop new treatments.

AFTE however applauded the important leap forward made by the USMCA’s digital trade provisions, which include key commitments and significant improvements over prior agreements.

AFTE is a coalition of trade associations and business groups dedicated to ending foreign unfair trade practices that harm American businesses and workers and to ensuring that America’s trading partners are held accountable for the commitments that they have made to treat American goods and services fairly. AFTE members represent companies – both large and small – from across the economy, including the manufacturing, agriculture, and service sectors. AFTE supports actions and policies that encourage U.S. trading partners to open their markets, reduce barriers to trade, and provide effective protection and enforcement of intellectual property (IP) rights.

USCIB Statement on USMCA Entry Into Force

Washington, D.C., July 1, 2020 – The U.S. Council for International Business (USCIB), which represents many of America’s leading global companies, welcomes today’s entry into force of the United States-Mexico-Canada Agreement (USMCA) trade agreement, preserving and deepening the economic ties in North America and bolstering the global competitiveness of our companies and workers. The implementation of this agreement comes at a critical time of restoring certainty to U.S. industry in the North American market, as the global market is working toward recovery from the impacts of the current crisis.

The three partner countries must continue to work together to ensure effective implementation of this agreement, so that the benefits of the agreement in its updated and modernized provisions including on digital trade and customs can be realized. Over 12 million American jobs depend on trade with Canada and Mexico, and continuing to build on this economic relationship is important for U.S. industry for future economic growth. USCIB looks forward to a seamless transition to the new agreement.

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world, generating $5 trillion in annual revenues and employing over 11 million people worldwide. As the U.S. affiliate of the International Chamber of Commerce (ICC), the International Organization of Employers, and Business at OECD (known as BIAC), USCIB helps to provide business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.